A Conversation on Hard Tech with Eric Migicovsky

Y Combinator2018-10-12

YC#Y Combinator#Eric Migicovsky#Adora Cheung#Pebble#Interview#Hardware#Hard Tech

27K views|5 years ago

💫 Short Summary

The video features discussions on the origins of the company name Pebble, challenges faced in manufacturing smartwatches, the importance of perseverance in achieving product-market fit, frugality in spending, benefits of crowdfunding, the decision to outsource components, understanding business models for growth, the challenges of hard tech ventures, the significance of early customer engagement, successful sales strategies, different approaches to funding, and the importance of product quality over patents. It also covers scaling strategies, hiring practices, finding co-founders, prototyping techniques, financing options, and managing inventory efficiently to support product development.

✨ Highlights

📊 Transcript

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Eric discusses the origin of the name 'Pebble' for his company, sharing how it was chosen after brainstorming various options and his inspiration while lying on a beach.

02:49

He recounts his experience with Y Combinator, initially unaware of what it was until encouraged to apply.

Despite being the third hardware company accepted, they joined YC in 2011 and had already shipped a few hundred watches.

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Early stages of business development

03:20

Borrowed money from parents and received government grants in Canada.

Challenges faced in manufacturing smartwatches, including RF signal issues and exploding electronics.

Made watches one by one in a garage to quickly identify and fix problems.

Sold around 700-800 units before transitioning to a more efficient manufacturing process.

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Challenges of starting a company and achieving product-market fit.

06:39

It took five years to find success through redesigning and creating the product.

Emphasis on perseverance and maintaining naivety in the face of skepticism.

Acknowledgment of initial lack of knowledge about industry norms and challenges of creating consumer hardware products on a limited budget.

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Importance of Frugality in Business Growth.

09:09

After raising $250,000 post YC, speaker invested in inventory and faced struggles with manufacturing and timing.

Overspending led to excess inventory and missed market opportunities, highlighting the significance of being frugal.

Frugality is crucial in industries lacking strong network effects or first mover advantages.

It's important to maintain scrappiness when scaling up and hiring, as successful companies often face challenges in this area.

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Crowdfunding is beneficial for startups in the early stages to raise funds for prototypes, particularly for hardware engineers with limited resources.

12:20

It allows for validation of market interest by reaching out to friends and family.

Avoid extravagant marketing campaigns at the beginning as most campaigns fail to deliver the product.

The process of creating and shipping a product through crowdfunding is educational and helps in quickly understanding customer preferences.

This process reduces the time between idea validation and market feedback.

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The importance of using crowdfunding as a marketing and sales channel.

15:03

Obtaining feedback from early adopters is crucial for refining the product.

Setting realistic delivery timelines and assessing skills and team before launching a campaign is advised.

Skipping crucial steps like community involvement and skill assessment should be avoided.

Earning credibility within niche communities like subreddits or Facebook groups is significant for successful product launches.

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Importance of varied skill sets including mechanical engineers, electrical engineers, and computer engineers for hard tech companies.